IMF Push Reforms in PNG with $918 million Short and Long Term Loans

The International Monetary Fund (IMF) has approved a 38-month Extended Credit Facility (ECF) and Extended Fund Facility (EFF) for Papua New Guinea (PNG) in the amount of SDR684.3 million, equivalent to $918 million, to address the economic impacts of multiple shocks, including low commodity prices, drought, earthquakes, and the COVID-19 pandemic.

See the definitions of ECF and EFF at the end of this article.

Reforms

The program aims to protect vulnerable groups and promote inclusive growth through debt sustainability, foreign exchange (FX) shortage alleviation, and enhanced governance and anti-corruption efforts. 

The IMF believes that the program will support and enhance PNG's credibility and improve its access to international financial markets.

What is not clear is what 'exactly' is/are changing and how the changes will affect the institutions and the people they serve.

Key Rates

The IMF loan will be subject to a 2.4% interest rate, lower than the current weighted average interest rate for external loans (2.8%) and domestic loans (7.2%). 

Repayment will be over a ten-year period, with a 5.5-year grace period.

It may seem like a good deal, but a loan is a loan. And, an IMF loan that comes with institutional reformations and conditions has a lot to be desired. 

If it sounds too good to be true, it probably is.

Pros and Cons of the IMF loans

Pros:

• The loan will provide much-needed financial support to the PNG government and enhance its credibility.
• The loan will help repair public finances and alleviate pressure on government spending.
• Priority areas for capital expenditure in the 2023 budget include transport, utilities, education and health.
• The IMF's support will improve PNG's access to international financial markets.

Cons:

• Phased disbursement of the loan will be conditional on progress against benchmarks that are yet to be made public. (This is IMF's secret weapon, it can do what it thinks is best, and as it pleases - not good for PNG.)
• The IMF will seek exchange-rate liberalisation, financial-sector deepening, and state-owned enterprise (SOE) reform under the new program, which may not align with recent steps taken by PNG to protect local industries through higher tariffs and ad hoc tax increases. This will be forced upon the PNG government whether it likes it or not!
• The loan does not significantly change risk around PNG's debt profile, which stands at K48.3bn.
• Continued policy reforms and international support are needed to address PNG's vulnerability to domestic and external shocks. (The details of the reforms are not clear)

 

Read about the 9 structural benchmarks that IMF is setting for PNG, Click Here.

IMF Push Reforms

The IMF's approval of the ECF and EFF is a significant development for PNG, but policy reforms and international support are still needed to address the country's vulnerability to economic shocks. 

While the loan's generous terms will help to contain repayment risk, the government must prioritize debt sustainability and FX shortage alleviation to address PNG's most pressing challenges.

Extended Credit Facility (ECF) and Extended Fund Facility (EFF) 

Notes on: ''The International Monetary Fund has approved a 38-month Extended Credit Facility (ECF) and Extended Fund Facility (EFF) for Papua New Guinea ''

The ECF and EFF are both lending arrangements that provide financial assistance to countries facing balance of payments difficulties. The ECF is a medium-term lending facility, while the EFF is a longer-term lending facility.

The ECF for PNG is designed to provide financial support to the country over a period of 38 months, while the EFF provides support over a longer period of time. The purpose of both facilities is to help PNG address its economic challenges while also implementing necessary structural reforms that can promote sustained economic growth and development.

The recent purported IMF debt facilities are a blended model pegged to 38 months and a further 10 years depending on IMF's ongoing situation analysis.

The policy conditions attached to both facilities include measures to strengthen public financial management, enhance revenue mobilization, improve the business climate, and address governance challenges. These reforms are intended to help restore macroeconomic stability and promote sustained economic growth and development in PNG.

The approval of both the ECF and EFF programs are conditional on IMF reforms in Papua New Guinea.

NASFUND Online Portal: How to Get the Help You Need

NASFUND is Papua New Guinea's largest and most successful superannuation fund, providing secure retirement benefits for over 620,000 members. 

As part of its commitment to providing accessible and convenient services, NASFUND offers a user-friendly online portal for its members, which provides easy access to their account information and other services. 

In this article, we will guide you through the process of registering for and logging into the NASFUND Online Portal, and highlight the benefits of using this platform.

Find out how to check you NASFUND balance using mobile phone, click here

How to Register for the NASFUND Member Portal

Before you can access the NASFUND Online Portal, you need to be a member of NASFUND. If you are not yet a member, you can join by completing an application form and submitting it to your employer or directly to NASFUND. Once you are a member, you can follow these steps to register for the NASFUND Online Portal:

Go to the NASFUND website at www.nasfund.com.pg

Click on the 'Member Login' button at the top right-hand corner of the page

Click on the 'Register' button on the login page

Enter your member number, date of birth, and email address

Create a username and password

Agree to the terms and conditions

Click 'Register' to complete the process

How to Login to the NASFUND Online Portal

Once you have registered for the NASFUND Online Portal, you can log in using the following steps:

Go to the NASFUND website at www.nasfund.com.pg

Click on the 'Member Login' button at the top right-hand corner of the page

Enter your username and password

Click 'Login' to access your account

If you forget your username or password, you can click on the 'Forgot Username' or 'Forgot Password' links on the login page and follow the prompts to reset your credentials.

Benefits of Using the NASFUND Members Online Portal

The NASFUND Online Portal provides a range of benefits for its members, including:

Access to account information: Members can view their account balances, transaction history, and other details at any time from anywhere.

Online transactions: Members can use the portal to update their personal information, nominate beneficiaries, and make online contributions.

Secure communication: Members can use the portal to send secure messages to NASFUND, which helps to protect their personal information.

Convenience: Members can access their account information and services at any time and from anywhere, making it easy to manage their superannuation.

Contact NASFUND Members Office

If you encounter any difficulties with registering for or logging into the NASFUND Online Portal, you can contact the NASFUND Members Office for assistance. You can reach them by phone at 1599 or by email at memberservices@nasfund.com.pg.

Conclusion

The NASFUND Online Portal is a convenient and secure platform for NASFUND members to manage their superannuation. By following the simple registration and login steps outlined in this article, members can easily access their account information and use a range of services online. With its user-friendly interface, secure communication features, and round-the-clock accessibility, the NASFUND Online Portal is an essential tool for managing your retirement savings.

NGIP Agmark Limited Delivers Profit Despite Drought: FY22 Financial Results Unveiled

NGIP Agmark Limited has announced a preliminary result of K3.97 million after tax for the year ended December 31, 2022. This is a decrease in revenue by K9.4m or 6.33% due to diminished sales in cocoa and coffee exports. However, the company still managed to declare a profit for FY22, proving its resilience despite a challenging year.

NGIP Agmark Limited Decrease in Revenue

The decrease in revenue was mainly due to a drought that hindered cocoa production for most of the year, leading to a significant drop in revenue compared to the previous year. 

However, through key initiatives from past experiences, combined with a robust reporting system and a streamlined management structure, NGIP Agmark Limited was able to minimize costs and take advantage of profit-making opportunities to ensure a profit for FY22.

The company's cost of sales decreased by K8m or 7.5% in FY22, and admin and finance costs grew by 1.31m or 2.8%, mainly due to occupancy costs. 

Despite the increase in occupancy costs, the company closed underperforming branches in the previous year, resulting in a 22% decrease in occupancy costs in FY21.

NGIP Agmark Limited Dividend Payout

During the AGM held in June 2022, the board announced a dividend payout for the FY21 performance of the audited K7.3M profit after tax. A distribution of K0.04 per share was paid in November 2022, marking the second consecutive year that a dividend was paid.

Throughout FY22, the company continued to focus on supporting its customers, especially the cocoa farmers, and solidifying strong relationships with suppliers, providing shareholder value through the challenges of 2022.

Looking forward, NGIP Agmark Limited

Looking forward, NGIP Agmark Limited aims to:

• continue its expansion plans, focusing on investing in technology to improve operational efficiency, and
• enhance customer experience, while also exploring new markets and business opportunities to grow the company's revenue and profitability.

Investors' Takeaway

• Despite facing a challenging year due to a drought that hindered cocoa production, NGIP Agmark Limited managed to declare a profit for FY22, demonstrating the company's resilience and strength.
• The company's focus on cost optimization and taking advantage of profit-making opportunities helped minimize costs and achieve profitability.
• NGIP Agmark Limited paid dividends for two consecutive years, indicating its commitment to creating value for shareholders.
• The company's investment in technology to improve operational efficiency and customer experience, coupled with its exploration of new markets and business opportunities, bodes well for its future growth and profitability.
• NGIP Agmark Limited's continued focus on supporting its customers, especially cocoa farmers, and building strong relationships with suppliers reinforces the company's commitment to its stakeholders and sustainable growth.

In Brief

Despite the challenges faced by NGIP Agmark Limited in FY22, the company has shown resilience and strength, delivering a profit and paying dividends to its shareholders. 

The company's focus on cost optimization and investment in new technology and markets bodes well for its future growth and profitability.

Credit Corporation PNG Commercial Bank Approval - Exciting Opportunities Ahead

Credit Corporation PNG has reported its financial results for the financial year ending December 31, 2022. 

• The company's core operating profit was K98.8m, up 25.0% from the previous corresponding period (PCP). 
• The net profit after tax (NPAT) was K86.04m, an increase of 11.9%. 
• The company's earnings per share rose from 25 toea to 28 toea per share. 
• The total risk-weighted capital ratio increased from 40.1% to 45.0%. 
• The dividend per share for FY22 was 22.5 toea, up 25.0% from the previous year.

Download the full report here.

Credit Corporation PNG dividend income

The Finance Division of Credit Corporation had an NPAT of K36.6m, up 41.9% from the PCP, while the Property Division recorded a core operating profit of K13.4m, up 31.0% from the PCP. 

The company's dividend income increased from K52.9m to K61.5m.

Credit Corporation PNG Commercial Bank 'Approval'

Credit Corporation is transitioning to becoming a fully-fledged niche commercial bank, and the Bank of PNG granted it 'Approval in Principle' for an unrestricted banking license. 

The company's outlook is positive, and it will continue to focus on pursuing growth opportunities while maintaining a strong balance sheet and disciplined approach to managing the quality of its loan book.

Investors' takeaway

For investors, the key takeaways are that Credit Corporation's financial performance for FY22 was strong, with an increase in profitability, earnings per share, and dividend per share. 

The company's decision to transition to a fully-fledged niche commercial bank and its Approval in Principle from the Bank of PNG for an unrestricted banking license are important developments to watch. 

The company's focus on disciplined management of its loan book and strong balance sheet is reassuring for investors.

Read about how to invest in PNG Stocks, Treasury Bills and Government Bonds.

In Brief:

Credit Corporation PNG has reported a strong financial performance in FY22, including a 25% increase in core operating profit and 11.9% rise in NPAT. The Group's total risk-weighted capital ratio rose to 45%, while its property division recorded a core operating profit of K13.4m. Credit Corporation also declared a final dividend for FY22 of 12.3 toea per share, a 25% increase compared to FY21. The Bank of Papua New Guinea granted the company 'Approval in Principle' for an unrestricted banking license, allowing it to transition to becoming a bank and ultimately listing on the ASX.

ANZ Transactive PNG Information for Customers

ANZ Transactive PNG is a cutting-edge digital banking platform designed to streamline and simplify banking operations for ANZ customers in Papua New Guinea. Business customers can securely manage their accounts and conduct a wide range of banking activities online, saving time and effort. 

In this article, we will delve into the key features and benefits of ANZ Transactive PNG, including:

• Transactive Login,
• Online Banking,
• Banking Features,
• Share Price,
• Internet Banking,
• Share,
• Credit Card, and
• Exchange Rate.

This article is for information only. If you need further clarification, see your nearest ANZ branch.

ANZ Transactive Login

Logging into ANZ Transactive PNG is easy and secure. Customers can access the platform through the official website and enter their login credentials, including their customer identification number (CIN) and password. 

Once logged in, customers can enjoy a wide range of features and services tailored to meet their banking needs.

ANZ Transactive Online Banking

ANZ Transactive PNG offers a comprehensive suite of online banking services to empower customers to manage their finances efficiently. 

With the online business banking, you can:

• check account balances and transaction history
• transfer funds between accounts, 
• pay bills, and setting up recurring payments.

The transactive online banking provides a convenient and user-friendly interface for all your banking needs. 

Customers can also view and download e-statements, set up alerts for account activity, and manage multiple accounts from a single platform, making it a one-stop solution for their banking requirements.

ANZ Transactive Banking Features

ANZ Transactive PNG comes with a host of advanced features that add value to customers' banking experience. 

The platform offers real-time access to transaction details, enabling customers to monitor and track their account activity on-the-go. 

Customers can also initiate domestic and international payments, including telegraphic transfers, payroll payments, and bulk payments, with just a few clicks. 

It also provides robust security features, including multi-factor authentication, transaction limits, and encryption protocols, to safeguard customer information and transactions.

ANZ Transactive Share Price

ANZ Transactive PNG lets customers stay updated with the latest share prices and market trends. 

Customers can access real-time share prices, historical price charts, and company news to make informed investment decisions. 

The platform also offers portfolio management tools, allowing customers to track their investments and review their portfolio performance.

ANZ Transactive Internet Banking

ANZ Transactive PNG provides a seamless Internet banking experience, enabling customers to access their accounts and conduct transactions from any Internet-enabled device. 

The platform is optimized for different screen sizes, making it accessible on desktops, laptops, tablets, and smartphones. 

Internet banking is available 24/7, providing customers with the flexibility to manage their finances anytime, anywhere.

ANZ Transactive Share

ANZ Transactive PNG offers customers the ability to buy and sell shares online through its share trading platform. 

Customers can access a wide range of investment options, including shares listed on the Papua New Guinea Stock Exchange (PNGX) and other international exchanges. 

It's share trading feature provides customers with real-time market data, research tools, and trade execution capabilities, enabling them to make informed investment decisions and execute trades quickly and efficiently.

ANZ Transactive Credit Card

ANZ Transactive PNG also offers credit card services to its customers, providing them with a convenient and flexible payment option for their day-to-day expenses. 

It's credit cards feature have various features and benefits, such as reward programs, travel insurance, and purchase protection, providing customers with added value and convenience. 

Customers can:

• manage their credit card accounts, 
• view transaction history, 
• make payments, and 
• set up alerts through the ANZ Transactive online banking platform.

These features make it easy to monitor and manage their credit card activities.

ANZ Transactive Exchange Rate

As an international bank, ANZ Transactive PNG provides customers with up-to-date exchange rate information for different currencies. 

Customers can access the latest exchange rates through the online banking platform, enabling them to make informed decisions when conducting foreign currency transactions or managing their international business transactions. 

The exchange rate information is updated in real-time, ensuring customers can access accurate and reliable exchange rate data.

Conclusion

ANZ Transactive PNG is a comprehensive digital banking platform that offers a wide range of features and services to simplify banking operations for ANZ customers in Papua New Guinea. 

With its user-friendly interface, robust security features, and real-time access to account information, 

ANZ Transactive PNG empowers customers to take control of their banking needs and achieve their financial goals with ease.

BSP PNG PaySecure App Authenticator for BSP Payments

The BSP PNG PaySecure App is a mobile application that provides an additional layer of security for online transactions. By turning your mobile phone or tablet into a One Time Password (OTP) generator, the app generates a unique OTP that can be used to authenticate your transactions.

Each time you use the app, it generates a new OTP that is valid for 30 seconds. This means that the OTP is only useful for a short period of time, reducing the risk of unauthorized access to your account. Once the 30-second time frame has elapsed, a new OTP will be generated, further enhancing the security of your transactions.

Bank South Pacific (BSP) safe and secure banking

In line with Bank South Pacific (BSP) commitment to providing safe and secure banking services, it has introduced the BSP PNG PaySecure App, a mobile application that generates an authentication code to ensure secure transactions while using the BSP PNG App and BSP Internet Banking.

To check out the information on BSP SME Loan Requirements and Eligibility Criteria, click here.

Features of BSP PNG PaySecure App

The BSP PNG PaySecure App is a free mobile application that turns your mobile phone or tablet into a One Time Password (OTP) generator. 

Each time you use the BSP PaySecure App, it generates a unique OTP that is valid for 30 seconds. Once the time has elapsed, a new OTP will be generated. 

This feature ensures that every transaction you make is secure, as the generated OTP can only be used once and cannot be duplicated.

The BSP PNG PaySecure App is user-friendly and easy to use. Once you have installed the app on your device, you will need to register using your existing BSP customer credentials, such as your username and password. 

Upon login, you will be prompted to create a 4-digit PIN that you will use to access the app. This PIN adds an extra layer of security to the app, ensuring that only authorized users can access it.

Benefits of Using BSP PNG PaySecure App

The BSP PNG PaySecure App provides a safe and secure way of transacting, ensuring that your transactions are protected from fraud and unauthorized access. 

It eliminates the need for physical tokens and SMS-based OTPs, which can be inconvenient and expensive.

Using the BSP PNG PaySecure App also allows you to enjoy the convenience of banking on-the-go. 

You can use the app to complete transactions, such as bill payments, fund transfers, and balance inquiries, from the comfort of your home or office, without the need to visit a physical branch.

How to Install and Log onto BSP PNG PaySecure App

To install the BSP PNG PaySecure App, you will need a smartphone or tablet that runs on either iOS or Android operating systems. 

The app can be downloaded from the App Store or Google Play Store for free.

To log onto the BSP PNG PaySecure App, you must be an existing BSP customer and have been issued a username and password. 

Once you have downloaded and installed the app, log in using your existing credentials. 

You will then be prompted to create a 4-digit PIN that you will use to access the app. Once you have created your PIN, you can start using the app to complete transactions securely.

BSP PNG PaySecure App

The app is a secure and convenient way of transacting that provides peace of mind to BSP customers. Its user-friendly interface and robust security features make it an ideal choice for customers who are looking for a safe and convenient way to complete transactions from their mobile devices. 

All in all, the BSP PNG PaySecure App offers a simple, convenient, and secure way to generate OTPs for online transactions, providing you with peace of mind knowing that your accounts are protected against unauthorized access.

For more information about the BSP PNG PaySecure App, contact BSP's Customer Service Centre at 320 1212/7030 1212, email servicebsp@bsp.com.pg, visit the BSP website at www.bsp.com.pg, or visit your nearest branch.

BSP Capital Stock Broker: How to Invest with BSP Capital

Investing in stocks can be a great way to grow your wealth and achieve your financial goals. BSP Capital is a leading investment firm in Papua New Guinea (PNG) that offers investment services for both domestic and overseas stocks. 

If you're interested in investing in PNG and overseas stocks with BSP Capital, here's a step-by-step guide on how to get started.

Step 1: Open an Account with BSP Capital

The first step to investing in stocks with BSP Capital is to open an account. You can do this by visiting their website or by visiting one of their offices in PNG. 

To open an account, you'll need to provide some personal information, such as your name, address, and identification documents.

Step 2: Fund Your Account

Once you've opened an account with BSP Capital, you'll need to fund it. You can do this by transferring funds from your bank account to your BSP Capital account. 

BSP Capital offers a variety of payment methods, including bank transfer, credit card, and mobile banking.

Step 3: Select the Stocks You Want to Buy

After funding your account, you can start selecting the stocks you want to buy. 

BSP Capital offers a wide range of domestic and overseas stocks, including companies listed on the PNG stock exchange, the Australian stock exchange, and the New Zealand stock exchange. 

You can use BSP Capital's research reports to help you make informed investment decisions.

Step 4: Place Your Order

Once you've selected the stocks you want to buy, you can place your order through BSP Capital's trading platform. 

You'll need to specify the number of shares you want to buy and the price you're willing to pay. 

BSP Capital charges a brokerage fee for every trade you make, which will depend on the value of your trade. 

You can find out more about BSP Capital's brokerage fees on their website, or visit them in person.

Step 5: Hold Your Shares

After buying your shares, you'll need to hold them in your BSP Capital account. 

BSP Capital offers a range of services to help you manage your portfolio, including regular portfolio updates, online trading, and access to research reports.

Step 6: Sell Your Shares

If you want to sell your shares, you can do so through BSP Capital's trading platform. 

You'll need to specify the number of shares you want to sell and the price you're willing to accept.

BSP Capital will charge a brokerage fee for every trade you make, which will depend on the value of your trade.

Required Forms to Fill

To open an account with BSP Capital, you'll need to fill out an account opening form. 

This form will require you to provide personal information, such as your name, address, and identification documents. 

You may also need to fill out additional forms depending on the type of account you're opening.

Assistance and Office to Visit

If you need assistance with opening an account or trading stocks, you can contact BSP Capital's customer service team. 

They can provide you with information on brokerage fees, trading platforms, and investment opportunities. 

You can also visit one of BSP Capital's offices in PNG to speak with a representative in person.

Important Details About Shares Investment with BSP Capital in PNG

Investing in shares with BSP Capital in PNG can be a great way to grow your wealth and achieve your financial goals. 

However, it's important to understand the risks involved. Here are some important details to keep in mind:

Risk and Reward

Investing in shares can be risky, as share prices can be volatile and can go up or down in value. However, investing in shares can also be rewarding, as you can earn dividends and capital gains if the share price increases.

Diversification

It's important to diversify your portfolio by investing in a range of different shares. This can help reduce your overall risk, as not all shares will be affected by the same economic or market conditions.

Research

Before investing in any shares, it's important to do your research. This can include reading company reports, financial statements, and news articles. BSP Capital also provides research reports that can help you make informed investment decisions.

Brokerage Fees

BSP Capital charges a brokerage fee for every trade you make. This fee will depend on the value of your trade and can be found on their website. It's important to factor in these fees when making investment decisions.

Tax Implications

Investing in shares can have tax implications. It's important to understand the tax rules in PNG and overseas where you're investing. BSP Capital can provide you with information on tax implications for your investments.

Investment Goals

Before investing in shares, it's important to determine your investment goals. Are you investing for the short term or the long term? What is your risk tolerance? These factors will influence your investment decisions.

Conclusion (BSP Capital PNG)

Investing in shares with BSP Capital in PNG can be a great way to grow your wealth and achieve your financial goals. 

By following the steps outlined in this guide, you can start investing in domestic and overseas shares today. It's important to remember that investing in shares involves risk, so it's important to do your research and diversify your portfolio. 

BSP Capital provides a range of services to help you manage your investments, including research reports, online trading, and portfolio updates. With the right approach and guidance, investing in shares can be a rewarding experience.